Partnership Questions

Identify that account to which share of profit of a deceased partner is debited from the date of the last Balance Sheet to the date of his/her death (assuming no change in profit sharing ratio of remaining partners).

Asha, Deepa and Lata are partners in a firm sharing profits in the ratio of 3 : 2 : 1. Deepa retires. After making all adjustments relating to revaluation, goodwill, Payment to Deepa and accumulated profit etc., the capital accounts of Asha and Lata showed a credit balance of Rs. 1,60,000 and Rs. 80,000 respectively. It was decided to adjust the capitals of Asha and Lata in their new profit sharing ratio. You are required to calculate the new capitals of the partners i.e Asha and Lata.

Case StudyRead the following information to answer.Arun and Ram are partners in a restaurant business sharing profits and losses in capital ratio. Their fixed capital from the beginning of the firm was Rs. $2,00,000$ and Rs. $1,50,000$ respectively.The profit for the year ended 31 March 2022 before the appropriation of Salary and Interest on Capital was Rs. $2,20,000$. Ram is allowed a salary of Rs. $2,000$ per quarter and interest on capital @ $10\%$ p.a.Due to the further expansion of the business, they decided to enter Sanjeev as a new partner for $\frac{1}{5}$ share in profits. It was agreed that Sanjeev will bring Rs. $1,00,000$ as capital and Rs. $50,000$ as his share of Goodwill. It was decided that he will give Rs. $1,00,000$ as loan to the firm for 3 years.The amount of distributed profits of both the partner's will be:

A, V and T were partners of a law firm sharing profits in the ratio of 5:3:2. Their partnership deed provided the following:(i) Interest on partners’ capital @ 5% p.a.(ii) A guaranteed that he would earn a minimum annual fee of Rs. 6,00,000 for the firm.(iii) T was guaranteed a profit of Rs. 2,50,000 (excluding interest on capital) and any deficiency on account of this was to be borne by A and V in the ratio of 2:3.During the year ending March 31, 2019, A earned a fee of Rs. 3,20,000 and net profits earned by the firm were Rs. 8,60,000. Partner’s capital on April 01, 2018 were A - Rs. 3,00,000; V - Rs. 3,00,000 and T - Rs. 2,00,000.What is the amount of profit to be credited to A's Capital account?

Match List I with List II regarding accounting treatments:List IA. Transfer of accumulated profitsB. Unrecorded asset sold on dissolution of firmC. Manager's commissionD. Partner's commissionList III. Realisation AccountII. Profit and Loss AccountIII. Profit and Loss Appropriation AccountIV. Partner's Capital AccountChoose the correct answer from the options given below:

A, V and T were partners of a law firm sharing profits in the ratio of 5:3:2. Their partnership deed provided the following:(i) Interest on partners’ capital @ 5% p.a.(ii) A guaranteed that he would earn a minimum annual fee of Rs. 6,00,000 for the firm.(iii) T was guaranteed a profit of Rs. 2,50,000 (excluding interest on capital) and any deficiency on account of this was to be borne by A and V in the ratio of 2:3.During the year ending March 31, 2019, A earned a fee of Rs. 3,20,000 and net profits earned by the firm were Rs. 8,60,000. Partner’s capital on April 01, 2018 were A - Rs. 3,00,000; V - Rs. 3,00,000 and T - Rs. 2,00,000.What is the amount of profit to be credited to V's Capital account?

If average capital employed in a firm is Rs. 15,00,000 and fair rate of return in the same industry was 10% (Wait, source implies calculation gives specific normal profit, let's use 8%). Fair rate of return was 8%. Goodwill was valued at Rs. 90,000 on the basis of three times of super profit. The Average Profit of the firm is?

Accounting treatment for a partnership firm is similar to that of a sole proprietorship business except the following aspects:(A) Distribution of Profit and Loss among the partners(B) Dissolution of Partnership Firm(C) Raising Capital through public offering(D) Adjustments for Wrong Appropriation of Profits in the PastChoose the correct answer from the options given below:

Match List I with List II regarding partnership parameters:List IA. Interest on capitalB. Gaining RatioC. Sacrificing ratioD. Revaluation of Assets and LiabilitiesList III. Admission of partnerII. Profit/Loss in the old profit sharing ratioIII. Continuing partnersIV. When partnership deed specifically provides for itChoose the correct answer from the options given below:

A and B are partners, they admit C into partnership. C was asked to pay Rs 2,50,000 though his share of capital was estimated Rs 2,00,000 only. For what was the extra Rs 50,000 asked from C?

Journal entry to be passed for unrecorded assets for preparing Revaluation A/C at the time of Retirement of a partner will be ____

Which of the following are shown under the capital account in case the partners' capitals are fixed?(A) Fresh capital introduced(B) Permanent capital withdrawn(C) Interest on capital(D) Amount of capital brought down from the previous yearChoose the correct answer from the options given below:

Based on the following passage, answer questions from 46 to 50:Meena and Tina are partners in a firm sharing profits in the ratio $3:2$. They decided to dissolve their firm on March 31, 2017 when their Balance Sheet was as follows:Balance Sheet of Meena and Tina as on March 31, 2017LiabilitiesAmount (Rs.)AssetsAmount (Rs.)Capital Accounts:Machinery$70,000$ Meena: $90,000$ Investments$50,000$ Tina: $80,000$$1,70,000$ Stock$22,000$ Sundry Creditors$60,000$ Sundry Debtors$1,03,000$ Bills Payable$20,000$ Cash at bank$5,000$ Total$2,50,000$ Total$2,50,000$ The assets and liabilities were disposed of as follows:a. Machinery was given to creditors in full settlement of their account and stock was given to bills payable in full settlement.b. Investments were taken over by Tina at book value. Sundry debtors of book value $\text{Rs. }50,000$ were taken over by Meena at $10\%$ less and remaining debtors realized $\text{Rs. }51,000$.c. Realisation expenses amounted to $\text{Rs. }2,000$.Question: When a creditor accepts an asset whose value is more than the amount due to him in full settlement, he will _______ the excess amount which will be credited to _______ Account.

In case of dissolution of a partnership firm, losses, including deficiencies of capital, shall be paid first out of:

From the following information, identify when goodwill is required to be calculated.(a) Admission of a Partner(b) Amalgamation of partnership firms(c) Dissolution of partnership firm(d) Retirement and Death of any partner(e) Preparation of Balance sheetChoose the correct answer from the options given below:

In line with what is prescribed by Accounting Standards, existing goodwill appearing in the balance sheet is written off at the time of:

Based on the passage given for Meena and Tina, answer the question:Identify the exact final total amount realized in cash from Sundry Debtors.

Neil, Kapil, and Sunil started a furniture business in partnership. After one year of operations, they began exporting contraband items hidden inside blank spaces within the furniture. As authorities found out about the illegal business operations of the firm, the legal system will compel them for:

Calculate the amount of adjusted profit for the year ended 31 March 2021 for the purpose of valuation of Goodwill from the following information:Profit for the year ended 31 March 2021: Rs. $80,000$ On 1 July, 2020, a major plant repair was undertaken for Rs. $10,000$ which was charged to Revenue. The said sum is to be capitalised for Goodwill valuation subject to adjustment of depreciation @ $10\%$ p.a. on reducing balance method.

Net loss of a firm as per the Profit and Loss Account for the year ending March 31, 2024 amounted to Rs. 75,000. Yaduvanshi, Madhulika, and Vidushi are partners, sharing profits and losses in the ratio of $2:2:1$. Their fixed capitals on April 01, 2019 were: Yaduvanshi Rs. 5,00,000, Madhulika Rs. 4,00,000, and Vidushi Rs. 3,50,000. On the basis of the above information, select the correct journal entry to distribute the loss:

Based on the passage given for Meena and Tina, answer the question:State the correct Journal entry when investments are taken over by partner Tina at their book value of $\text{Rs. }50,000$.

L, N and T are partners sharing profits in the ratio of $5:3:2$. If N retires, what would be the gaining ratio of L & T?

In the absence of a Partnership deed, partners share profits and losses in:

A and B are partners, sharing profits equally. Their fixed capitals were Rs. 2,00,000 and Rs. 3,00,000 respectively. Interest on capital as provided under the partnership deed @10% p.a. was omitted. Select the correct option to perform the rectification adjustment:

__________ is/are not true with regard to Limited liability partnership.(A) Separate Legal entity(B) Unlimited liability for one partner(C) Indian Partnership Act, 1932 is applicable(D) Perpetual Succession(E) Unlimited liability of partnersChoose the correct answer from the options given below:

The amount of interest payable to Kabir at the end of the fourth year will be:

A, B and C were partner's in a firm sharing profit and losses in the Ratio of $5:3:2$. They admitted D into partnership for $1/5$ share of profit which he takes equally from A and B. D brought sufficient amount of goodwill in cash. Capital brought in by is Rs. $50,000$. On the date of admission the Balance Sheet of A, B and C was as follows :Balance Sheet as on 31st March, 2021

Goodwill is to be valued at $3$ years purchase of average profit of last $4$ years which were Rs. $60,000$ (2017-18), Rs. $60,000$ (18-19), Rs. $30,000$ (19-20). On revaluation it was found that all debtors are good.What would be the effect of the line "All Debtors are good".

If at the time of Kabir's retirement, his individual share of goodwill is valued at Rs. 15,000, and assuming partners share profits equally ($1:1:1$) unless specified otherwise, what will be the total valuation of the firm's goodwill?

At the time of admission, credit balance of Profit and Loss account appearing in books will be transferred to:

Match List-I with List-II:List-IList-II(A) Meaning of Dissolution(I) Section 49 of the Partnership Act, 1932(B) Application of Assets(II) Section 39 of the Partnership Act, 1932(C) Private Debts Vs Firm's Debts(III) Section 4 of the Partnership Act, 1932(D) Nature of Partnership(IV) Section 48 of the Partnership Act, 1932Choose the correct answer from the options given below:

Anand, Bahadur, and Chander are partners sharing profits equally ($\frac{1}{3}$ each). On Chander's retirement, his entire share is acquired by Anand alone. The gaining percentage of Anand will be:

Under which method is the "Number of Years' Purchase" not considered for goodwill valuation?

Select the entry that is to be made when a creditor accepts an asset in full and final settlement of his account.

Match List-I with List-II:List-IList-II(A) Accumulated Profits/Losses(I) New Ratio(B) Share of goodwill at the time of admission of a partner(II) Gaining Ratio(C) Division of profits after admission of a partner(III) Old Ratio(D) Share of goodwill at the time of retirement/death of a partner(IV) Sacrificing RatioChoose the correct answer from the options given below:

How will you deal with the following items while preparing for the Bombay Women Cricket Club, its Income and Expenditure Account for the year ending 31st March 2021, and its Balance Sheet, on the same date : Donation for the Pavilion construction Rs. $12,25,000$, Expenditure incurred Rs. $10,80,000$, Total estimate Rs. $25,00,000$.

Ram, one of the partners, has withdrawn ₹ $1,00,000$ from the business for personal use. If the rate of interest charged on drawings is $12\%\text{p.a.}$, find the total amount of interest on drawings to be charged from Ram:

Select the way by which provisions appearing in the Balance Sheet of a partnership firm are closed at the time of firm's dissolution.

The calculation of the "Gaining Ratio" is NOT required or carried out during which of the following events?

Match List I with List II:List IList IIA. Mutual AgencyI. It can be oral or writtenB. AgreementII. Written agreementC. Liability of partnersIII. Partnership concern carried by all or any of them acting for all.D. Partnership deedIV. Joint and unlimitedChoose the correct answer from the options given below:

The Central Government, via the Companies (Miscellaneous) Rules, 2014, has prescribed the maximum permissible limit of partners in a single partnership firm to be:

Match List - I with List - II.
$$\begin{array}{ll}\text{List - I}& \text{List - II}\\ \text{(A) Increase in Furniture Value}& \text{(I) Credit side of Partner’s Capital A/c}\\ \text{(B) Depreciation on Machinery}& \text{(II) Debit side of Partner’s Capital A/c}\\ \text{(C) General Reserve}& \text{(III) Credit side of Revaluation A/c}\\ \text{(D) Goodwill appearing in Books}& \text{(IV) Debit side of Revaluation A/c}\end{array}$$
Choose the correct answer from the options given below:

Valuation of goodwill is NOT required in which of the following scenarios?

At the time of admission of partner if goodwill exist in the books of account it will be written off among:

Accounting principles classify Goodwill as a/an:

Match List - I with List - II.
$$\begin{array}{ll}\text{List - I}& \text{List - II}\\ \text{(A) Profits of firm after admission of partner}& \text{(I) Sacrificing Ratio}\\ \text{(B) Goodwill brought in by new partner}& \text{(II) Old Ratio}\\ \text{(C) Profit on revaluation}& \text{(III) Gaining Ratio}\\ \text{(D) Retiring Partner’s Share of Goodwill}& \text{(IV) New Ratio}\end{array}$$
Choose the correct answer from the options given below:

While settling accounts during the dissolution of a partnership firm, what is the correct statutory order of application of the firm's assets according to Section 48 of the Indian Partnership Act, 1932?(A) In paying the debts of the firm to third parties(B) In paying to each partner proportionately what is due to him on account of capital(C) Divided among the partners in their profit sharing ratio if any surplus remains(D) In paying each partner proportionately what is due to him/her from the firm for advances/loans as distinguished from capitalChoose the correct answer from the options given below:

Find the right chronological sequence of the appropriation of profits in a partnership firm:A. Profits transferred to P and L appropriation A/c.B. Interest on capitalC. Profits distributed to partners after appropriationD. Interest on partner's loan A/cChoose the correct answer from the options given below:

Comprehension:Read the financial details from the preceding text carefully.What is the total amount realized from the sale/disposal of assets that will be debited to the Bank Account?

Deepali, Nimisha and Sonam were partners in a firm sharing profits in the ratio of $5:3:2$. Nimisha retired and the new profit sharing ratio between Deepali and Sonam was $2:3$. On Nimisha's retirement, the goodwill of the firm was valued at Rs. $1,20,000$. From the above information, calculate share of Deepali's sacrifice or gain:

Comprehension:Read the financial details from the preceding text carefully.For taking over half of the investments, Bharat's Capital Account will be:

Case StudyRead the following information to answer.Arun and Ram are partners in a restaurant business sharing profits and losses in capital ratio. Their fixed capital from the beginning of the firm was Rs. $2,00,000$ and Rs. $1,50,000$ respectively.The profit for the year ended 31 March 2022 before the appropriation of Salary and Interest on Capital was Rs. $2,20,000$. Ram is allowed a salary of Rs. $2,000$ per quarter and interest on capital @ $10\%$ p.a.Due to the further expansion of the business, they decided to enter Sanjeev as a new partner for $\frac{1}{5}$ share in profits. It was agreed that Sanjeev will bring Rs. $1,00,000$ as capital and Rs. $50,000$ as his share of Goodwill. It was decided that he will give Rs. $1,00,000$ as loan to the firm for 3 years.The new profit sharing ratio of Arun, Ram and Sanjeev will be:

Ram and Laxman started business on 1st Jan 2020 with a capital of $\text{Rs. }1,20,000$ and $\text{Rs. }80,000$ respectively. Ram introduced $\text{Rs. }50,000$ to the firm on 1st July 2020 as additional capital. If the rate of interest is $15\%\text{ p.a.}$, assuming that accounts are closed as per calendar year, then the Interest payable to Ram on Capital would be:

Deepali, Nimisha and Sonam were partners in a firm sharing profits in the ratio of $5:3:2$. Nimisha retired and the new profit sharing ratio between Deepali and Sonam was $2:3$. On Nimisha's retirement, the goodwill of the firm was valued at Rs. $1,20,000$. Using the information given in the case study, calculate Deepali's amount of sacrifice or gain in Goodwill.

When realisation expenses are paid by the firm on behalf of a partner, which among the following will be debited:

Choose the correct sequence of financial statements prepared for a partnership firm at the end of a financial year:A. Capital AccountsB. Profit and Loss A/cC. Profit and Loss Appropriation A/c (Adjustment A/c)D. Balance SheetChoose the correct answer from the options given below:

If, at the time of admission of a new partner, profit and loss account appears in the books, it will be transferred to:

Deepali, Nimisha and Sonam were partners in a firm sharing profits in the ratio of $5:3:2$. Nimisha retired and the new profit sharing ratio between Deepali and Sonam was $2:3$. On Nimisha's retirement, the goodwill of the firm was valued at Rs. $1,20,000$. If information provided in the case study is used, the sacrifice or gain of Sonam share of goodwill will be:

R, S and K are partners sharing profits in the ratio $8:6:4$. On the retirement of R, the new profit sharing ratio between S and K was decided to be $5:3$. The Gaining ratio is:

A, B and C are partner's sharing profits and losses in the ratio of $\frac{3}{8}:\frac{1}{2}:\frac{1}{8}$.If A dies, then the new ratio of B and C will be :

G, H and P are partners. On retirement of G, the goodwill already appears in the Balance Sheet at $\text{Rs. }24,000$. The goodwill will be written-off:

$A$, $B$, and $C$ were partners in a firm with a profit-sharing ratio of $5:3:2$. $B$ retires and the new profit-sharing ratio between $A$ and $C$ is settled at $3:2$. Calculate the gaining ratio of the remaining partners.

When the date of drawing is not specified, interest on drawings is calculated for:

Revaluation Account is a/an:

In the absence of any information regarding the acquisition of share in profits of the retiring/deceased partner by the remaining partners, it is assumed that they will acquire his/her share in ________.

$A$ and $B$ are partners sharing profits in the ratio of $2:1$. $C$ is admitted for a $\frac{1}{4}\text{th}$ share of profits, bringing $\text{Rs. }20,000$ as capital. After all adjustments related to goodwill, revaluation of assets, and reassessment of liabilities, the adjusted capitals of $A$ and $B$ are $\text{Rs. }45,000$ and $\text{Rs. }15,000$ respectively. It is agreed that the partners' capitals should be arranged in proportion to the new profit-sharing ratio. Determine the required new capital of partner $B$.

The Central Government has prescribed the maximum number of partners in a firm to be _______

On 1/4/22, X and Y decided to dissolve their firm. On that date of dissolution, Goodwill appeared at Rs. $5,00,000$ in the Balance Sheet. Goodwill will be:

K, N and P are partners sharing profits and losses in the ratio of $4:3:2$. N retires and the goodwill is valued at $\text{Rs. }72,000$. K and P decided to share future profits and losses in the ratio of $5:3$. Find which of the following statements is not correct?

If at the time of a partner's admission, a positive (credit) balance in the Profit and Loss Account appears in the books, it will be transferred directly to the:

At the time of retirement of a partner, undistributed profits appearing in the balance sheet of the old firm is transferred to the capital account of:

Match the concepts in List I with the events in List II:List IList IIA. When a new partner joins the partnershipI. Compulsory dissolutionB. When an existing partner leaves the partnershipII. Admission of a partnerC. When the business of a firm becomes illegalIII. Prepared in the case of death of a partnerD. Executor's AccountIV. Retirement of a PartnerChoose the correct answer from the options given below:

A and B are partners sharing profits equally with capitals of $\text{Rs. }45,000$ each. They admitted C as a new partner for $\frac{1}{3}\text{rd}$ share in the profit. C brings $\text{Rs. }60,000$ as his capital. Find the goodwill of the firm.

Select the category of partner(s) who will compensate the deceased partner for their share of goodwill at the time of death.

In case of the dissolution of a firm, the firm ceases to conduct business and has to settle its accounts. Losses, including deficiencies of capital, shall be paid in the following manner and order:(A) Out of capital of partners.
(B) By the partners individually in their profit sharing ratio.
(C) Profits.Choose the correct answer from the options given below:

Case study: A and B were partners in a partnership firm. Due to the ill health of B they decided to dissolve the firm. The position of Assets and Liabilities on the date of dissolution was:

It was agreed that following transactions will take place :A. A wanted to start the business in sole proprietorship So he took Building and Furniture at $10\%$ less than book value.B. All the debtors proved good except a person C who did not pay Rs. $10,000$.The accumulated profits and reserve are transferred to:

In the event of retirement of a partner, which of the following deductions has to be made from his/her share?

Profits made on the Revaluation of Assets and Reassessment of Liabilities are distributed among whom?

In the event of the death of a partner, the ratio in which the continuing partners acquire the share from the deceased partner is called .......

Sometimes the value of Goodwill is not given directly at the time of admission/retirement of a partner. In such a situation, it has to be inferred from the total capital structure and profit-sharing ratio. Such Goodwill is called:

A and B share profits in the ratio of $3:2$. C was admitted as a partner who gets $\frac{1}{5}$ share. New profit sharing ratio, if C acquires $\frac{3}{20}$ from A and $\frac{1}{20}$ from B, would be:

Select the necessary conditions required for computing interest on drawings using the Average Period Method:A. Equal amount of drawingsB. Fixed intervals between drawingsC. Varying amounts of drawingsD. Different intervals between drawingsE. Presence of an agreed Rate of InterestChoose the correct answer from the options given below:

Yadu, Madhu and Vidu are partners, sharing profit and losses in the ratio of $2:2:1$. Their fixed capitals on April 01, 2018 were: Yadu $\text{Rs. }5,00,000$, Madhu $\text{Rs. }4,00,000$ and Vidu $\text{Rs. }3,50,000$.As per the partnership deed, partners are entitled to interest on capital $@5\%\text{ p.a.}$ and Yadu has to be paid a salary of $\text{Rs. }2,000$ per month. The net loss of the firm as per profit and loss account for the year ending March 31, 2019, amounted to $\text{Rs. }75,000$. On the basis of the profit and loss appropriation account, Partners' distribution of loss would be:

From the following information, calculate interest on Capital of C, a partner for the year ended 31st March, 2022.C's Capital on 31/3/2022: Rs. $12,00,000$ Profit credited to C for the year ended 31/3/2022: Rs. $3,00,000$ Drawings made during the year: Rs. $1,00,000$ Additional Capital introduced on 1/10/21: Rs. $5,00,000$ Rate of Interest = $12\%$ p.a.

When a new partner brings his share of goodwill in cash, the amount is credited to:

Match List I with List II:\begin{tabular}{|l|l|}\hline\textbf{LIST I} & \textbf{LIST II} \ \hlineA. Only Capital A/c exists & I. Credited to partner's capital account \ \hlineB. Capital account balance remains unchanged & II. Debited to Partner's Capital Account \ \hlineC. Fresh/additional capital brought in by partner & III. Fixed Capital Account \ \hlineD. Permanent withdrawal of capital & IV. Fluctuating Capital Account \ \hline\end{tabular}Choose the correct answer from the options given below:

On the dissolution of a firm, creditors are transferred to:

Identify from the following scenarios when the valuation of goodwill is required:A. Change in profit-sharing ratio among existing partnersB. Admission of a new partnerC. Dissolution of a Partnership firm (sale of business as a going concern)D. Amalgamation of partnership firmsE. Regular yearly preparation of a Balance SheetChoose the correct answer from the options given below:

According to Section __________ of the Indian Partnership Act 1932, the dissolution of partnership between all the partners of a firm is called the dissolution of the firm.

Arrange the following financial steps in the correct chronological sequence when winding up and dissolving a partnership firm.A. Payment of loans advanced by PartnersB. Settlement of secured outsider liabilitiesC. Realization of assets into cashD. Final settlement of partner capital accountsE. Payment of unsecured outsider liabilitiesChoose the correct answer from the options given below:

Which of the following indicates a situation of compulsory dissolution?

A, B and C were partner's in a firm sharing profit and losses in the Ratio of $5:3:2$. They admitted D into partnership for $1/5$ share of profit which he takes equally from A and B. D brought sufficient amount of goodwill in cash. Capital brought in by is Rs. $50,000$. On the date of admission the Balance Sheet of A, B and C was as follows :Balance Sheet as on 31st March, 2021

Goodwill is to be valued at $3$ years purchase of average profit of last $4$ years which were Rs. $60,000$ (2017-18), Rs. $60,000$ (18-19), Rs. $30,000$ (19-20). On revaluation it was found that all debtors are good.Calculate the total amount brought in by new partner D including Goodwill share :

Identify the required condition under which the clauses of a partnership deed can be modified or altered.

Match List I with List II in context of not having partnership deed.LIST IA. Interest on loanB. Interest on drawingsC. SalaryD. Profit sharing ratioLIST III. EqualII. Will not be chargedIII. @ $6\%$ p.a.IV. Will not be allowed/providedChoose the correct answer from the options given below:

As per Receipts and Payments Account for the year ended on March 31, 2020, subscriptions received were Rs. $2,50,000$, subscriptions outstanding on 1-04-2019 Rs. $50,000$, Subscriptions received in advance as on 31-3-2020 are Rs. $30,000$. Subscriptions for the year 2019-20 will be:

The capital accounts of partners will always show a ____ balance under fixed capital account method

Case studyA and B were partners in a partnership firm. Due to the ill health of B they decided to dissolve the firm. The position of Assets and Liabilities on the date of dissolution was:

It was agreed that following transactions will take place :A. A wanted to start the business in sole proprietorship So he took Building and Furniture at $10\%$ less than book value.B. All the debtors proved good except a person C who did not pay Rs. $10,000$.The amount recovered from the debtors is:

A, B and C were partner's in a firm sharing profit and losses in the Ratio of $5:3:2$. They admitted D into partnership for $1/5$ share of profit which he takes equally from A and B. D brought sufficient amount of goodwill in cash. Capital brought in by is Rs. $50,000$. On the date of admission the Balance Sheet of A, B and C was as follows :Balance Sheet as on 31st March, 2021

Goodwill is to be valued at $3$ years purchase of average profit of last $4$ years which were Rs. $60,000$ (2017-18), Rs. $60,000$ (18-19), Rs. $30,000$ (19-20). On revaluation it was found that all debtors are good.From the above calculate amount of Goodwill :

A provision for doubtful debts is to be created at 5% of debtors. Debtors in the balance sheet are Rs. 60,000. Provision for Doubtful debts to be shown in Revaluation Account:

Keshav, Nirmal and Pankaj are partners sharing profits and losses in the ratio of $4:3:2$. Nirmal retires and the goodwill is valued at $\text{Rs. }72,000$. Keshav and Pankaj decided to share future profits and losses in the ratio of $5:3$. Gaining Ratio of Keshav and Pankaj is:

Arrange the following steps for calculating Goodwill under Capitalisation of Average Profits Method in correct sequence-(A) Ascertain the actual firm's capital (net assets) by deducting outside liabilities from the total assets.(B) Compute the value of goodwill by deducting net assets from the capitalised value of average profits.(C) Ascertain the average profits based on the past few years' performance.(D) Capitalize the average profits on the basis of the normal rate of return to ascertain the capitalised value of average profits.Choose the correct answer from the options given below: